Moldova is going to reorganise its rail operator Moldovan Railways. The company will be split in two: a passenger and freight operator and an infrastructure manager.
By the end of the year, Moldovan Railways (CFM) should have a new structure, according to Radio Moldova. Infrastructure management will be the responsibility of the new entity CFM Infra, whereas train operations will fall under CFM Passengers and Freight.
“The reorganisation is necessary to comply with the provisions of the Railway Transport Code and the commitments undertaken by the Republic of Moldova”, explained Infrastructure Minister Vladimir Bolea.
“These include separating transportation from infrastructure management, creating and strengthening structures responsible for railway safety and market regulation, and co-financing railway infrastructure and passenger transportation”.
As a result of the reorganisation, Moldova should get some form of competition on the rail market. The plan should allow other carriers to enter the market and consequently boost efficiency and performance.
EU membership
“What we’re doing is common practice almost everywhere in the world. We need to separate infrastructure from carriers. Having only one carrier doesn’t improve prices or service quality. By separating these areas, we can attract more companies to the market and create real competition,” noted Prime Minister Vasile Tofan.
Besides introducing competition, the move is also a step towards securing EU membership. Separating infrastructure management from transport operations is a prerequisite for joining the bloc. It needs to be organised under a separate entity, and public funds cannot be freely transferred between infrastructure management and rail transport operations. Separated infrastructure management should also guarantee fair and neutral train path and capacity allocation under EU law.
Moldova has been planning to turn infrastructure management into a separate activity for a while already. In 2024, the EBRD expected Moldova to finish the process by the end of that year.